My guest on this episode is Andy Cagnetta. Andy is the CEO of Transworld Business Advisors, one of the largest business brokers in the country. The typical guest on Think Like an Owner is an owner operator often running a business they acquired, although not always. And therefore, the buyer's side of a transaction is where we have spent the most time as a podcast. I wanted to hear the other side and learn more about a broker's perspective in the small business and search world. What do they care about? What do buyers do that is counterproductive, and how could they more effectively build relationships? We go over questions like this, along with what a good business broker looks like, why some listings never sell, how to impress sellers and brokers as a buyer, the perception of search funds, and how Andy himself is an acquisition entrepreneur who acquired Transworld and became CEO.

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Links:

Andy on LinkedIn

Transworld Business Advisors

BizBuySell.com

Closing the Deal by Andy Cagnetta

Halftime by Bob Buford

Never Split the Difference by Chris Voss

Topics:

(3:59) - Andy’s background and career before acquiring Transworld

(7:25) - What’s the business model of a business brokerage?

(9:24) - How do you find someone who is contemplating selling their business? 

(10:28) - What is your thought process behind growing franchises?

(11:41) - What are some of the most common questions or concerns business owners have when you start working with them?

(15:08) - What’s gotten more challenging about evaluating and buying businesses?

(16:41) - Do you find that sellers are consistently overvaluing their business?

(19:33) - What types of listings have a tough time selling?

(22:24) - What are some unique or vanity-play businesses that are tough to sell?

(23:49) - What percent of listings never sell?

(24:20) - How do you identify a good broker?

(25:50) - What are some common miscommunications between buyers and brokers?

(30:59) - What’s the broad perspective of buyers from the eyes of brokers?

(34:15) - How have you seen buyers distinguish themselves from a seller?

(36:41) - What are some ways buyers derail the acquisition process?

(38:44) - How much influence does the broker have over who the seller chooses to go with?

(40:09) - How impactful is a track record of previous acquisitions when compared to a new buyer? How can new buyers make themselves stand out?

(43:30) - What are some helpful tips for sellers to prep their business to be sold?

(44:56) - What should sellers do after they step away from the business?

(45:54) - How have you built relationships in different markets and communities?

(48:43) - What college class would you teach if it could be about anything?

(49:21) - What strongly held belief have you changed your mind on?

(50:04) - What’s the best business you’ve ever seen?